Pair to evade Apple and Google Pay with upcoming updates to Korean apps

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Apple and Google are about to face their first major test under a law targeting controversial app-store tariffs, and the result could be a battle in South Korea with the company that owns Tinder.

Match Group – which also owns dating apps like Hinge, OkCupid and PlentyOfFish – is looking to capitalize on a recently passed South Korean law that targets Apple and Google penalties, which can amount to up to 30 percent of a person’s revenue. app.

Match, a voice critic of commissions along with developers like Spotify and Epic Games, the creator of Fortnite, bought the Seoul-based Hyperconnect dating app in June for $ 1.73 billion. Now, the Dallas-based company plans to send updates to its apps by the end of October, allowing South Korean customers to circumvent Apple and Google’s payment systems, The Post learned.

While the updates seem straightforward and in line with the new legislation, some sources close to Match are bracing for possible disruption. They bet that either Apple, or Google or both might drag their feet or decline updates altogether. This, in turn, could lead to a lengthy appeal process with regulators, who have threatened to fine companies up to 3% of their total South Korean revenue if they don’t comply.

The first law of its kind banning Apple and Google from requiring app developers to use their payment systems was passed in the South Korean parliament by President Moon Jae-in’s party. AP

The stakes are high for Match, which plans to shell out over $ 500 million in such commissions globally this year alone, which account for roughly 20% of the company’s global revenue.

Both Apple and Google charge payment fees of up to 30% and prevent developers from using other payment processors. AP

South Korea passed a law in August banning Apple and Google from requiring app developers to use their payment systems. Meanwhile, bills presented to the US House and Senate in August would also ban Apple and Google from requiring app developers to use their payment systems. EU antitrust regulators said last year that they are investigating whether Apple’s payment requirements violate the block’s competition laws.

In September, a California judge in a dispute between Apple and Epic Games ordered Apple to allow developers using its app store to offer customers payment systems in addition to Apple Pay. But the judge also sided against Epic on several points and the video game producer appealed the sentence. It is unclear when or if Apple will be forced to allow Californians to use alternative payment systems.

On September 16, Match Chief Financial Officer Gary Swidler told the Wall Street Journal that the company was considering offering alternative payment systems to California customers in the future.

The Journal also reported that updates to the company’s Korean apps would be sent out in the coming months, but Tuesday’s news shows Match is moving faster than expected.

Apple and Google did not immediately respond to requests for comment.

Match Group bought Seoul-based startup Hyperconnect for $ 1.73 billion in June. Hyperconnect / Facebook

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